HeidelbergCement India (500292) Q4 00/01 earnings summary

Executive summary

• FY ended Mar. 31, 2001 recorded a net loss of Rs. 5,958.06 lakh; Q4 posted the first quarterly profit in nearly three years as cement demand and prices improved from Dec. 2000.

• Annual results were substantially better than the prior period on a pro-rata basis; the prior financial period covered nine months, limiting comparability.

Financial highlights

• Net sales were Rs. 34,134.57 lakh, up 4.79% against the annualized prior nine-month period; cement sales volume fell 2.5% to 17.28 lakh tonnes.

• Net loss was Rs. 5,958.06 lakh after financial charges of Rs. 4,784.51 lakh and depreciation of Rs. 2,055.02 lakh; exceptional items added Rs. 68.02 lakh and prior-period adjustments Rs. 65.76 lakh.

• Accumulated losses carried to the balance sheet were Rs. 18,963.39 lakh; no dividend was recommended.

Outlook and guidance

• Demand and cement prices showed steady improvement from Dec. 2000; outlook was positive on expected growth in private housing and government infrastructure spending.

• A proposed roads program envisaged Rs. 69,000 crore of investment, including Rs. 30,000 crore over three years; concrete road construction was expected to support cement demand.

• Improved monsoon conditions and successful road-project execution were identified as conditions for a stronger economic outlook.